JPMorgan Trading Loss May Reach $9 Billion – NYTimes.com

JPMorgan Trading Loss May Reach $9 Billion – NYTimes.com.

nader nazemi

Dimon: We may have underestimated our losses

Wow ! Talk about losing big time thanks to bungled trades and excessive risk by JPMorgan. This is the result of unbridled greed and the audacity to think they are indeed the masters of the universe where in fact these banks live in a precarious world that is at the mercy of minute changes that can go wrong at anytime. Many words come to mind of which; Moral Hazard, Too Big to Fail …

Losses on JPMorgan Chase’s bungled trade could total as much as $9 billion, far exceeding earlier public estimates, according to people who have been briefed on the situation.

When Jamie Dimon, the bank’s chief executive, announced in May that the bank had lost $2 billion in a bet on credit derivatives, he estimated that losses could double within the next few quarters. But the red ink has been mounting in recent weeks, as the bank has been unwinding its positions, according to interviews with current and former traders and executives at the bank who asked not to be named because of investigations into the bank.
 
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